SOLUTION: At age 30 to save for retirement Rebecca decides to deposit $75 at the end of each month in a IRA that pays 6.1% compounded monthly. Use the formula below for the value of an annui

Question 309103: At age 30 to save for retirement Rebecca decides to deposit $75 at the end of each month in a IRA that pays 6.1% compounded monthly. Use the formula below for the value of an annuity.
A. How much will she have from the IRA when she retires at age 65
B. Find the interest
A=P[(1+R/N)^(N)(T)-1]/R/N
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
At age 30 to save for retirement Rebecca decides to deposit $75 at the end of 49
A=P[(1+R/N)^(N)(T)-1]/R/N
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A(35) = 75[[(1+(0.061/12)]^(12*35) -1]/(0.061/12)
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A(35) = 75[1457.9868] = $109,349.01
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B. Find the interest
I = 109,349.01 - 75*35*12 = $77849.01
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Cheers,
Stan H.
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